By
Mike Lawrence
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Posted Jun. 9, 2015 at 1:54 pm
Updated Jun 9, 2015 at 8:35 PM
NEW BEDFORD — The developer behind the New Bedford casino proposal said Tuesday that it had submitted financial terms with its primary investor to state gaming officials, potentially meeting a crucial deadline after months of extensions and clearing a huge hurdle ahead of the city’s June 23 vote on the $650 million project.
"KG Urban Enterprises has submitted a signed term sheet between it and GLPI to the Massachusetts Gaming Commission," KG Urban spokesman Andrew Paven wrote in an email.
Pennsylvania-based Gaming and Leisure Properties Inc. is KG Urban's primary financial backer for the casino, hotel and conference center development, proposed for New Bedford's waterfront on the MacArthur Drive site of an abandoned NStar power plant.
State gaming officials confirmed receiving KG Urban’s documents, the end result of financial negotiations that spanned months. Commissioners gave KG Urban extensions on application deadlines in February, March and twice in May.
“(Tuesday), KG Urban did submit requested documentation which is now under review by the MGC’s Investigations and Enforcement Bureau (IEB). The Commission will receive an update from the IEB on the overall Region C licensing process at MGC’s next public meeting,” commission spokesman Elaine Driscoll said in a news release.
Southeastern Massachusetts is known as Region C in state gaming circles.
The Gaming Commission is scheduled to respond to KG Urban’s submitted term sheet Thursday in Boston. Commissioners stated that plan May 28, when they granted KG Urban its final extension on the financial deal.
Tuesday’s deadline will enable IEB staff to review the term sheets Wednesday, ahead of the commission’s public meeting Thursday.
Closing a deal with GLPI — pending the commission’s approval — is a huge milestone for KG Urban and New Bedford casino backers. The proposal still faces hurdles including a positive vote June 23, completion of application materials late this summer or early in the fall, and then selection by the commission over a competing proposal in Brockton.
But securing hundreds of millions in financial backing amid an increasingly competitive casino market in the state and across New England, with unknowns including the lingering potential for tribal gaming in Taunton, is a significant statement.
“The confirmation that KG Urban has financial backing from GLPI is another positive step forward for the project,” Mayor Jon Mitchell said Tuesday. “There are many (steps) left to go, obviously, and I’m ready to support KG however I can in order to help the project down the road.”
A public casino forum is scheduled for 6 p.m. Wednesday at the Zeiterion Performing Arts Center downtown. The final forum scheduled so far is from 6 to 8 p.m. June 17 at Normandin Middle School in the North End.
Wednesday’s forum is sponsored by Leadership SouthCoast and SouthCoast Media Group. The June 17 forum is sponsored by the city.
A Brockton proposal by Mass Gaming & Entertainment is KG Urban’s only remaining competition for the single resort casino license the commission can allocate in Southeastern Massachusetts.
Brockton voters narrowly approved Mass Gaming’s $650 million proposal for a Brockton Fairgrounds site May 12, in that city’s referendum.
Follow Mike Lawrence on Twitter: @MikeLawrenceSCT
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